[aa_subtitle_display]Replacing employees is expensive. You may lose productivity while the position is vacant, there’s the cost of advertising the job, recruiting and interviewing candidates, and training the new employee (where there’s also a drop in productivity while the new employee learns and an existing employee takes the time to train them. The Center for American Progress estimates that replacing an employee can cost an average of 10 to 30 percent of that employee’s annual salary. It could even be as much as 213 percent of the annual salary for top employees. When you have a good employee, you need to keep them. Here are some things to consider to keep the great employees you already have so you can keep your business running smoothly and save money.
Hire the Right People
Hiring the right people in the first place will save you a lot of time, money, and headaches in the long run. During job interviews, make sure that you are hiring based on skills and suitability for the job, plus how well the candidate will fit in with corporate culture.
Work with Supervisors
“Employees don’t quit jobs. They quit managers,” explains HR expert Steve Miranda. Track retention in your company: are there certain supervisors who retain their staff and others who have high turnover? The supervisors with high turnover likely need training to be better leaders, or perhaps they are not the right fit for the company. Coaching that problem supervisor can help you keep more employees and boost productivity. You may also want to look for stressors in the workplace and train supervisors to help their employees through them.
Offer Great Benefits
Employees are looking for good health insurance, retirement plans, and paid time off, so give yours a great plan that would be hard to leave. Buying insurance individually is expensive and confusing, so without benefits, employees may be looking for a new job that offers them what they need.
Give Employees a Path
No one wants to be stuck in a dead-end job. Not all of your employees are looking for a meteoric rise up the corporate ladder to CEO, but everyone wants to be recognized and rewarded for their hard work. Create an employee recognition program and reward great work. Let employees know that there is a path to increased recognition, wages, and responsibilities with hard work.
Many employees are looking for flexibility to help them balance their jobs with their lives outside of work. To keep great employees, consider offering options like job sharing or telecommuting (if it fits your business.)
These are just a few ways to retain your great employees. If you worry that your company can’t afford great benefits or leadership training, or if you are not comfortable with recruiting and interviewing, consider partnering with a PEO. PEOs offer many more services than simple payroll, so it is worth researching whether a PEO can help you to keep your employees.